Labor and installation costs are a significant but relatively small portion of the total cost of solar panel installations.
Breakdown of Labor Costs
- Labor Percentage: Labor costs typically account for around 5.5% to 10% of the total solar project cost, depending on the source and market conditions.
- Per Watt Cost: The average labor cost is approximately $0.50 to $0.59 per watt.
- Total Labor Cost Example: For a 7.9 kW system, labor might account for about $1,264, based on 2022 NREL data. For a 5 kW system, labor would be around $3,000.
Installation Costs
- Total Installation Cost: This includes not just labor but also hard costs (equipment) and soft costs (permits, marketing). The average U.S. cost for solar panel installation is approximately $31,558.
- Components of Installation Cost: While labor is a part, other costs like equipment (solar panels, inverters), permits, and marketing are significant components.
Factors Influencing Costs
- Location and System Size: Costs vary by location, system size, and local incentives.
- Complexity of Installation: More complex installations, such as those requiring specialized equipment or structural assessments, can increase costs.
Overall, while labor and installation costs are essential components, they are often dwarfed by other expenses like equipment and soft costs in the total cost of solar panel installations.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-significant-are-labor-and-installation-costs-in-the-total-solar-panel-cost/
